Illegal. Tax avoidance refers to the behavior of taxpayers to minimize their tax obligations without violating the provisions of the tax law. Tax avoidance is against the tax law. Tax avoidance means that taxpayers take advantage of loopholes or imperfections in the tax law to avoid or reduce tax payment by artificially arranging business and financial activities. The consequences are the direct loss of national income, the expansion of the cost of using foreign capital, the destruction of fair and reasonable taxation principles, and the distortion of national income and distribution.